AVOD A market primed for success
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The 20,000 foot view
The leading ad-supported video on demand (AVOD) services in the US have doubled their weekly active users (WAUs) in the past months. While still niche, AVOD is now moving ever closer to mainstream adoption. This is most strikingly seen in the pivot of its userbase, from younger, lower-income demographics to older and wealthier consumers. However, increased adoption is more of an endorsement for free rather than ad-supported services, with AVOD users over-indexing for ad avoidance preferences. Squaring the disconnect between the subscription-free model and the antagonism to ads is AVOD’s next great challenge.
Key Insights
- Between 2020 2021, average WAU engagement for leading US AVOD services has with The Roku Channel increasing ten percentage points to
- However, over-indexing ad avoidance for video consumers a key strategic challenge that consumer tolerance rather than willing with the ad-monetisation model
- Despite ad-aversion, monetisation across leading video behaviours AVOD consumers exceeds the consumer
- AVOD users now older and earning above incomes, thus presenting an opportunity AVOD services to finesse traditional TV ads with contextual advertising, personalise value exchange propositions through ads
- AVOD has potential to be the streaming up’ option for households that have one or two video rather than adding yet another on top
Companies and brands mentioned in this report :Amazon, Amazon Prime Video, , Peacock, Pluto, Fox Corporation, Roku, The Roku Channel, Tubi